The Ministry of Finance, through Notification No. 128/2024, has exempted the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) from the requirement of tax deduction at source (TDS) on any payments received by the trust. This exemption applies to payments under Chapter XVII of the Income-tax Act, 1961, as specified under clause (46B) of section 10 of the Act. The notification, which came into force on December 18, 2024, clarifies that no TDS will be applicable on payments made to CGTMSE, providing relief to the trust in its operations. The exemption is a part of the government’s efforts to support micro and small enterprises through enhanced financial assistance mechanisms.
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 128/2024 – Income-Tax | Dated: 18th December, 2024
S.O. 5476(E).—In exercise of the powers conferred by sub-section (1F) of section 197A of the Income-tax Act, 1961 (43 of 1961) (hereafter in this notification referred to as the said Act), the Central Government hereby notifies that no deduction of income-tax shall be made under Chapter XVII of the said Act on any payment received by the Credit Guarantee Fund Trust for Micro and Small Enterprises as referred to in clause (46B) of section 10 of the said Act.
2.This notification shall come into force on the date of its publication in the Official Gazette.
[No. 128/2024/F.No. 275/77/2024-IT(B)]
RUBAL SINGH, Dy. Secy.
